Retail entrepreneur Theo Paphitis has called on Andy Burnham to simplify the process for businesses to hire young people, citing concerns over a youth jobs crisis. Paphitis, whose business empire includes Ryman, Robert Dyas, and Boux Avenue, is the latest prominent figure to highlight the challenges facing young people seeking employment.
Official figures indicate that over one million individuals aged 16 to 24 are currently not in employment, education, or training (NEETs). Paphitis argues that businesses are struggling to expand their workforces due to increasing operational costs, including higher minimum wages, national insurance contributions, business rates, and energy expenses. He suggests that a raft of new worker protections being implemented by the Labour party are also adding to these difficulties, estimating that the retail sector has absorbed an additional £6.5 billion in employment costs over the past year.
"Entry-level, flexible jobs that give people their first experience of work" are particularly at risk, Paphitis stated. He emphasized the historical significance of Saturday jobs in providing young people with their initial exposure to the working world, a sentiment he shares from his own early career experiences starting at 14.
Paphitis warned that if legislation makes it more difficult or expensive to hire individuals with no prior experience, young people seeking their first job will be the ones who suffer. He noted that under the proposed Employment Rights Act, firms may be required to offer guaranteed hours to regular workers, a stipulation retailers argue necessitates a reduction in overall hiring to maintain flexibility.
His comments follow similar concerns raised by Alex Baldock, the outgoing boss of Currys, who urged the next Prime Minister to reduce the risks and costs associated with hiring staff in large numbers. Paphitis contends that if a government is serious about improving living standards and providing opportunities for young people, it should facilitate the creation of more entry-level positions, not fewer, especially at a time when so many young people are not engaged in education, employment, or training.